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Essentials in Supplier Diversity Flashcards

7 cards from real CPSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Essentials in Supplier Diversity flashcards as text

  1. Which federal regulation requires federal contractors with contracts over $750,000 to submit a Subcontracting Plan for supplier diversity?

    Answer: FAR 52.219-9

    FAR 52.219-9 mandates subcontracting plans that set goals for small and disadvantaged business utilization in federal contracts exceeding $750,000.

  2. A company is classified as a Disadvantaged Business Enterprise (DBE) under the DOT program. What is the primary eligibility requirement beyond being socially and economically disadvantaged?

    Answer: Personal net worth of the owner must not exceed $1.32 million

    The DOT DBE program caps the personal net worth of the disadvantaged owner at $1.32 million (excluding business equity and primary residence) to ensure economic disadvantage.

  3. When evaluating a supplier diversity program's effectiveness, which metric best measures SECOND-TIER impact?

    Answer: Spend by prime contractors with diverse subcontractors

    Second-tier spend measures how much prime (first-tier) contractors spend with diverse businesses in their own supply chains, extending diversity beyond direct purchasing.

  4. A Veteran-Owned Small Business (VOSB) seeking federal set-aside contracts must be verified by which agency?

    Answer: DVA (Department of Veterans Affairs)

    The VA's Center for Verification and Evaluation (CVE) verifies Veteran-Owned and Service-Disabled Veteran-Owned Small Businesses for participation in VA set-aside programs.

  5. Which concept describes the practice of tracking and reporting how much of your direct suppliers' spend goes to diverse businesses?

    Answer: Tier 2 reporting

    Tier 2 reporting captures the diverse spend of your direct (Tier 1) suppliers, providing visibility into the broader supply chain's diversity performance.

  6. An organization wants to ensure its supplier diversity program is not tokenistic. Which approach best demonstrates STRATEGIC integration?

    Answer: Linking supplier diversity goals to executive compensation

    Tying supplier diversity performance to executive compensation embeds accountability at the highest organizational level, signaling genuine strategic commitment.

  7. Under SBA regulations, what is the maximum number of employees allowed for a manufacturing company to qualify as a small business (general rule)?

    Answer: 500 employees

    The SBA's general size standard for manufacturing industries is 500 employees, though specific NAICS codes may have different thresholds.